Cybercrime – Bihar Police Tighten Crackdown on Mule Accounts
Cybercrime – The Economic Offences Unit (EOU) of Bihar Police has initiated a statewide campaign to identify and dismantle mule accounts that are being used to facilitate cybercrime and illegal financial transactions. Officials say the move is part of a broader strategy to curb rising cases of online fraud and money laundering linked to organized networks operating across state borders.
Rising Concern Over Fraudulent Bank Accounts
According to EOU officials, the number of mule accounts — bank accounts opened or operated on behalf of others for unlawful financial transfers — has increased significantly over the past two years. These accounts are often created using forged Know Your Customer (KYC) documents and are used to route funds obtained through digital scams.
Investigators have placed bankers and customer service centre (CSC) operators under close observation, particularly in rural and border districts where such activities are suspected to be more prevalent. Authorities believe that coordination between cybercriminal groups and local intermediaries has enabled the rapid expansion of these accounts.
National Agencies Join the Investigation
The issue recently gained national attention after the Central Bureau of Investigation registered a case involving a branch manager of Punjab and Sindh Bank along with 17 others. During its probe, the agency discovered that transactions worth Rs 1,084 crore were routed through 13 accounts that had allegedly been opened with falsified documentation.
Although investigators identified Punjab as a key operational hub in the case, officials indicated that financial trails and operational links may extend to Bihar. As a result, Bihar’s law enforcement agencies have intensified their vigilance and coordinated closely with central agencies.
In a separate development, the CBI arrested an assistant manager of Canara Bank and an officer of Axis Bank in Patna for allegedly facilitating mule accounts for cybercriminal networks.
Allegations of Internal Complicity
Sources within the EOU revealed that some banking officials are suspected of providing guidance to fraudsters on how to avoid detection systems. These systems, commonly known as red flag mechanisms, are designed to identify unusual transaction patterns through automated monitoring tools.
Investigators are examining whether insider assistance helped criminals bypass safeguards intended to flag suspicious financial behavior. Authorities maintain that any bank staff found complicit will face strict legal action.
Rural Networks Under Scrutiny
EOU officials have also pointed to a growing nexus between cybercriminals and CSC operators in rural and border regions of Bihar. These centres, which provide digital and banking-related services, are now being reviewed to determine whether they were knowingly or unknowingly involved in facilitating the creation of fraudulent accounts.
Letters have been sent to all Superintendents of Police across districts, directing them to initiate action in connection with 616 identified mule accounts. Law enforcement agencies are verifying account holders, examining transaction histories, and freezing suspicious funds where necessary.
Funds Frozen and Victims Compensated
Authorities report that swift intervention by the EOU has led to the freezing of approximately Rs 107 crore suspected to be linked to fraudulent transactions. In addition, around Rs 8 crore has been returned to victims who were defrauded through online scams.
Additional Director General N H Khan stated that the unit is implementing firm measures to dismantle cybercrime networks operating through financial channels. He also appealed to citizens to exercise caution.
The EOU has urged the public not to open bank accounts in exchange for commissions or allow others to operate their accounts. Officials stressed that such arrangements, even if initially perceived as harmless, can expose individuals to serious legal consequences.
With coordinated action between state and central agencies, authorities aim to disrupt the financial infrastructure that sustains cybercrime. Investigations remain ongoing as officials continue to trace money trails and identify those responsible.